Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Sun, 19 Nov 2023 16:57:46 GMT by
Hi, I'm a digital artist, and in addition to regular commission fees and hourly rates, I've been fortunate enough to sometimes be given revenue share and royalties from game projects I've helped create or taken a lead role in. Recently I was approached by someone looking to purchase my revenue share of the project, this would take the form of handing over the digital account that my % of revenue is redirected to, in exchange for a lump sum payment. Would this payment be classed as regular income, or is it a Capital gain? My revenue share and royalties aren't expressed as conventional shares, but as a written agreement and contract with the owner of the game they come from, and is normally paid in a digital token to the account on the platform it is hosted on, before being transferred to my bank account. Thanks, 

Name Removed admin . 
Posted Wed, 22 Nov 2023 15:23:38 GMT by HMRC Admin 20 Response
Hi Callum Luckwell,
This is likely to be regarded as the disposal of an asset.  
Please refer to CG12000 - Chargeable assets: intangible assets: introduction for guidance on chargeable assets.  
Also CG12700 - Disposal of assets: generalfor details about disposals.
Thank you.

You must be signed in to post in this forum.